For many years, the Santa Monica short sales market was a difficult market to crack. It was hard to try and weed through all the different paperwork that existed for each lender involved with the home. Even with the difficulty that has come with working with Santa Monica short sales, the popularity of the transaction has become so popular that guidelines were written in late 2012 as a way to streamline the process.
One of the major changes with dealing with Santa Monica short sales is timeline as to when a homeowner can list their home as a short sale. In the past, you had to wait until you were months behind on payments before you could even be considered as a short sale. Now, lenders with Freddie Mac or Fannie Mae can do a short sale without falling behind on mortgage payments. Do be eligible for this program you have to prove economic hardship because of instances such as death, divorce, or new employment that is a long distance away.
Another option that homeowners have with Santa Monica short sales is that they have the option to make payment to lenders at closing so that they can immunize themselves from deficiency judgment after the sale of the home. It used to be that homeowners selling their home under Santa Monica short sales just had to wait to see if deficiency judgment would come their way, but the ability to use assets to pay lenders gives homeowners more freedom after the home sale process.
One of the major highlights of the guidelines for Santa Monica short sales comes to military personnel. If a person on active military duty is transferred to another location, their home can automatically qualify as a short sale. In fact, they will not be responsible for the shortfall that could exist after the sale of the home.
The government is trying more and more to make the Santa Monica short sales process more streamlined so that these homes can continue to be part of the real estate market. It is important that you work with a specialized Realtor that understands these guidelines so that you can make the most of the short sale process.